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C.H. Lucky Factory Export & Import Trade & Consultancy Ltd.

Minimum Order Quantities - Guidelines

We manufacture and sell plastic toys, keychains and other items mainly to wholesalers, agents and distributors, and to promotional and marketing companies etc. in various countries around the world. The economies of scale are very important for such small size and low unit cost items, which make up much of our existing products range. So this usually means what can seem like quite large minimum order quantities. To save time here are some guidelines. The figures below are approximate only, rather than hard and fast rules, as the article size, and the packaging requirements will considerably affect the calculation. If in doubt please consult us.

1) A full shipping container provides the best economy for our wholesaling clients, to minimize the total manufacturing, packaging and transport costs. For example a 20' container can transport around 240 average-sized cartons, which corresponds to a quantity of roughly 5 000 gross or a total of about 700 000 small items. Several different item references can make up this number. This is termed FCL (full container load).

However we also understand the point of view of prospective small / medium business enterprise buyers, for whom such quantities may be out of their scale, and who may wish to buy smaller quantities. In this case please note the following points:

2) We can accept minimum order quantities (M.O.Q.) corresponding to 20 cartons (say roughly 400 gross, or 60 000 units). This could be for two items, say 10 cartons of each item. These cartons are then consolidated by the transporter with other shipments to the same area. This is termed LCL (loose container load) transport. As another measure consider our M.O.Q. corresponds to a total minimum sales order of about $US 10 000. As mentioned above these figures are rough guidelines only and we can be flexible.

3) If you are buying our own factory products, using our trading services, and ordering other products in the Hong Kong area, we have some limited storage capabilities in Hong Kong and we may be able to arrange consolidation for you ourselves.

4) Finally, you may have an idea for a product that you wish to develop and market as quickly and efficiently as possible. This may be for the typical low unit cost items you can see on our website, or for more "up-market" products. We can do both. In this case you will need to know the tooling costs. Please consult us in this case. You can rely on our discretion. We can quote you the costs for creation of the necessary moulds, and the item unit costs that you will need to include in your own break-even point calculations. (The previous M.O.Q. remarks refer to our existing products range.) We have successful recent experience of such OEM product development, so we can also work with you in this way. We have our own "in-house" model-making and mould production section that produces the required tooling quickly, economically, and with "seamless" integration into our production facilities.We are sure we can be competitive in this area.

If you need clarification on any of the above points, please consult us: chihongtoys@biznetvigator.com

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